Deckers to Wind Down Its Koolaburra Brand

Stephen Garner
·3-min read

Deckers Brands is continuing to refine its brand portfolio and plans to wind down its Koolaburra shoe brand by the end of the year.

On the company’s third quarter 2025 earnings call on Thursday, Deckers’ president and chief executive officer Stefano Caroti told analysts that the move to sunset Koolaburra was made so that it could place even more of a focus on its star Ugg brand.

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“To maintain focus on our most significant organic opportunities, we’re planning to phase out the Koolaburra brand stand-alone product collections and operations,” Caroti said. “As part of this change, we expect to sunset Koolaburra.com at the end of this fiscal year and wind down Koolaburra in the wholesale channel throughout the calendar year 2025.”

Caroti added that the company will provide a more complete update on this forthcoming change during its earning call in May as part of Deckers’ forward-looking guidance for fiscal year 2026.

The confirmation from Deckers comes after a recent note from Williams Trading analyst Sam Poser discussing the move.

“The Koolaburra business has been an approximately 20 basis point drag to annual operating margin, with annual sales of about $50 million,” Poser wrote in a note dated Jan. 20. “The decision to wind down Koolaburra is wise for the following reasons: It allows Deckers to become more focused on its key franchises; Koolaburra was unable to be as innovative as its key competitor, BearPaw in the moderate fur lined boot business, due to the risk of tripping on Ugg styles; and BearPaw margins, price points, styling, and sell-through rates have outperformed Koolaburra.”

Founded in 1991 in Santa Barbara, Calif., Koolaburra started as a sheepskin footwear label in direct competition to Ugg. But in 2015, Deckers Brands acquired Koolaburra for an undisclosed sum and quickly rebranded it to Koolaburra by Ugg just one year later. At the time of its relaunch, the footwear label was set to serve as the mid-tier price point alternative to Ugg.

This is the latest Deckers-owned brand to be phased out in recent months. In August, the company sold its Sanuk outdoor lifestyle shoe brand for an undisclosed sum to Canadian active company Lolë Brands. Prior to the sale, Deckers, which purchased Sanuk in 2011 for $120 million, hadn’t been able to turnaround the beleaguered surf shoe brand for quite some time.

But, in a stark contrast, Deckers resurrected its once dormant Ahnu brand in March. Reimagined as a “super sneaker brand,” Ahnu was bought by Deckers for an undisclosed sum in 2009 and ran the then outdoor-focused shoe brand until the company shuttered its operations in 2018. It’s debut Sequence 1 sneaker has a slightly elevated price point as to not compete with Hoka, with retail prices starting at $225.

Earlier on Thursday, the Goleta, Calif.-based footwear company reported net sales in the third quarter of fiscal 2025 increased 17.1 percent to $1.827 billion compared to $1.560 billion the same time last year. Net income in the period was $456.7 million, up from $389.9 million in the same year-ago quarter.

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